Sun Pharma to buy Ranbaxy for $3.2 billion

Japanese drug maker, Daiichi Sankyo that owns 63.4 percent stake in the companies has said in a statement that it will hold a stake of about 9 percent in Sun Pharmaceutical after the deal.

"We believe this transaction brings significant value to all Ranbaxy shareholders. Sun Pharma has a proven track record of creating significant long-term shareholder value and successfully integrating acquisitions into its growing portfolio of assets. We are confident that Sun Pharma is the ideal partner to help us realize our full potential and are excited to participate in future value creation opportunities," stated Mr Arun Sahwney, Managing Director and Chief Executive Officer of Ranbaxy.

The deal is said to be unanimously approved by the Boards of Directors of Sun Pharma, Ranbaxy, and Ranbaxy's controlling shareholder, Daiichi Sankyo. Ranbaxy's board and Sun Pharma's board have recommended approval of the transaction to their respective shareholders.

Meanwhile, Ranbaxy's Japanese owners have also confirmed that personnel have been dispatched to provide all the necessary support to resolve the quality problems at Ranbaxy.